Vantage International Holdings Ltd revenue decline accelerated to 42.2% in FY2015 vs. 2.8% a year earliner
19/06/2015 • About Vantage International Holdings Ltd (
$15) • By InTwits
Vantage International Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 4.7% in FY2015, 3.4% in FY2014, 8.3% in FY2013, 4.3% in FY2012, 6.4% in FY2011
- Vantage International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 12.2 in FY2015, 21.7 in FY2014, 55.4 in FY2013, 27.8 in FY2012, 249 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vantage International Holdings Ltd ($15) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,600 | 2,957 | 3,477 | 3,380 | 1,952 | -42.2% |
| Gross Profit | 208 | 179 | 202 | 185 | 136 | -26.7% |
| SG&A | | | | | 52 | |
| EBITDA | 167 | 128 | 289 | 115 | 92 | -19.9% |
| Net Income | 284 | 234 | 319 | 115 | 135 | 16.6% |
Balance Sheet
|
|---|
| Cash | 284 | 359 | 366 | 403 | 568 | 40.9% |
| Short Term Debt | 231 | 442 | 544 | 591 | 855 | 44.8% |
| Long Term Debt | 410 | 442 | 123 | 181 | 23 | -87.1% |
Cash flow
|
|---|
| Capex | 249 | 28 | 55 | 22 | 12 | -43.9% |
Ratios
|
|---|
| Revenue growth | 26.6% | 13.7% | 17.6% | -2.8% | -42.2% | |
| EBITDA growth | 40.1% | -23.2% | 125.7% | -60.3% | -19.9% | |
| Gross Margin | 8.0% | 6.0% | 5.8% | 5.5% | 7.0% | 1.5% |
| EBITDA Margin | 6.4% | 4.3% | 8.3% | 3.4% | 4.7% | 1.3% |
| Net Income Margin | 10.9% | 7.9% | 9.2% | 3.4% | 6.9% | 3.5% |
| SG&A, % of revenue | | | | | 2.6% | 2.6% |
| CAPEX, % of revenue | 9.6% | 0.9% | 1.6% | 0.6% | 0.6% | -0.0% |
| ROIC | 11.1% | 6.5% | 13.2% | 4.3% | 2.9% | -1.4% |
| ROE | 37.7% | 22.4% | 23.6% | 6.7% | 6.7% | 0.0% |
| Net Debt/EBITDA | 2.1x | 4.1x | 1.0x | 3.2x | 3.4x | 0.2x |
Revenue and profitability
Vantage International Holdings Ltd's Revenue dropped on 42.2% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 3.4% to 4.7% in FY2015.
Gross Margin increased slightly on 1.5 pp from 5.5% to 7.0% in FY2015.
Net Income marign increased on 3.5 pp from 3.4% to 6.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Vantage International Holdings Ltd had CAPEX/Revenue of 0.62%. Vantage International Holdings Ltd's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.95%.
Return on investment
The company operates at low ROIC (2.91%) and ROE (6.70%). ROIC decreased slightly on 1.4 pp from 4.3% to 2.9% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 9.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 3.2x to 3.4x in FY2015. Debt jumped on 13.8% in FY2015 while cash jumped on 40.9% in FY2015.
Appendix 1: Peers in Engineering&Construction
Below we provide Vantage International Holdings Ltd benchmarking against other companies in Engineering&Construction industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Richly Field China Development Ltd ($313) | | | -45.0% | 464.2% | |
| Junefield Department Store Group Ltd ($758) | 22.9% | -20.3% | -24.9% | 126.6% | |
| CNQC International Holdings Ltd ($1240) | 401.9% | 21.6% | 91.0% | 103.7% | |
| Wison Engineering Services Co Ltd ($2236) | 1.2% | -2.9% | -24.9% | 90.3% | |
| China Resources and Transportation Group Ltd ($269) | | 939.8% | 3,196.3% | 87.9% | -41.6% |
| |
|---|
| Median (39 companies) | 9.2% | 9.2% | 21.3% | 11.7% | 8.7% |
|---|
| Vantage International Holdings Ltd ($15) | | 13.7% | 17.6% | -2.8% | -42.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | 2.2% | 43.6% | 65.6% | 64.0% | |
| HNA Infrastructure Company Ltd ($357) | 61.6% | 66.4% | 62.1% | 62.4% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 50.1% | 54.1% | 54.3% | 41.5% | |
| Grand Ming Group Holdings Ltd ($1271) | 20.4% | 11.0% | 18.1% | 35.7% | 19.7% |
| China Saite Group Co Ltd ($153) | 29.4% | 32.1% | 33.7% | 29.8% | |
| |
|---|
| Median (34 companies) | 11.5% | 11.7% | 11.9% | 12.4% | 6.2% |
|---|
| Vantage International Holdings Ltd ($15) | 8.0% | 6.0% | 5.8% | 5.5% | 7.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huayu Expressway Group Ltd ($1823) | -0.5% | 46.2% | 73.8% | 77.1% | |
| HNA Infrastructure Company Ltd ($357) | 60.0% | 62.8% | 63.7% | 62.8% | |
| Beijing Capital International Airport Co Ltd ($694) | 55.1% | 53.4% | 52.9% | 50.3% | |
| Cheung Kong Infrastructure Holdings Ltd ($1038) | 39.8% | 31.2% | 20.6% | 36.2% | |
| Grand Ming Group Holdings Ltd ($1271) | 17.5% | 10.0% | 15.8% | 31.0% | 19.0% |
| |
|---|
| Median (40 companies) | 9.2% | 8.7% | 6.9% | 6.2% | 2.7% |
|---|
| Vantage International Holdings Ltd ($15) | 6.4% | 4.3% | 8.3% | 3.4% | 4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HNA Infrastructure Company Ltd ($357) | 43.3% | 36.8% | 5.7% | 85.4% | |
| PYI Corp Ltd ($498) | 6.6% | 3.7% | 4.2% | 24.5% | 13.1% |
| Shun Cheong Holdings ($650) | 7.2% | 16.4% | 8.0% | 23.9% | |
| Freetech Road Recycling Technology Holdings Ltd ($6888) | 6.1% | 4.2% | 7.7% | 20.2% | |
| KFM Kingdom Holdings Ltd ($3816) | 6.5% | 4.6% | 11.5% | 14.9% | |
| |
|---|
| Median (40 companies) | 4.4% | 2.5% | 3.1% | 2.2% | 2.7% |
|---|
| Vantage International Holdings Ltd ($15) | 9.6% | 0.9% | 1.6% | 0.6% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chun Sing Engineering Holdings Ltd ($2277) | | | 98.3% | 54.9% | |
| CNQC International Holdings Ltd ($1240) | 23.1% | 12.2% | 22.3% | 40.4% | |
| China Saite Group Co Ltd ($153) | 46.3% | 64.0% | 53.2% | 35.3% | |
| Excel Development Holdings Ltd ($1372) | | 33.1% | 27.2% | 16.4% | 8.6% |
| China Machinery Engineering Corp ($1829) | 35.5% | 24.9% | 20.4% | 16.0% | |
| |
|---|
| Median (41 companies) | 6.9% | 5.2% | 5.0% | 3.4% | 0.3% |
|---|
| Vantage International Holdings Ltd ($15) | 11.1% | 6.5% | 13.2% | 4.3% | 2.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Resources and Transportation Group Ltd ($269) | | | | 66.7x | 29.7x |
| CNC Holdings Ltd ($8356) | -0.7x | | 22.0x | 21.9x | 24.3x |
| Deson Development International Holdings ($262) | 3.1x | 3.8x | 4.9x | 13.7x | |
| Chun Wo Development Holdings Ltd ($711) | | 14.3x | 8.1x | 12.6x | |
| Hsin Chong Construction Group Ltd ($404) | 4.3x | 1.8x | 8.0x | 10.2x | |
| |
|---|
| Median (33 companies) | 0.7x | 1.7x | 3.1x | 2.6x | 12.5x |
|---|
| Vantage International Holdings Ltd ($15) | 2.1x | 4.1x | 1.0x | 3.2x | 3.4x |
